Paper Details

Materials management has received an increasing interest and development since last few decades. In a manufacturingcontext no production or assembly is possible without required materials,Materials management is the major function oforganization which constitutes major costs associated with production of goods and services, where many authors outlinethe expenditure in material function ranges from 50% to 70% of the total expenditure. Thus looking at the criticality interms of material availability, customer service&related cost factors, it is important to have tight control on materialsplanning, procurement, storage, movement and consumption which is the key importance of today’s enterprises.Inventory management is one of the corepillars of materials functionwhich specifically deals with investment decisions ofinventory, while financial models refer inventory as a current asset, and lean wastes refer inventory as one of the waste.Thus inventory being classified as a point between asset which helps to fulfill customer needs and customer service whileon other side it is waste for organization if not well managed.As all organizations are focused to work on solving real time complex problems concerned with reducing costs, improveproducts and services improve production with supply continuity and mainly improving customer satisfaction as a majorgoals in mind, Inventory decisions plays an important role and touching to all the aspects mentioned above.Stocking high level of inventory than actual requirement is not a good situation because organization can face challengeslike inventory storage space, storage costs, obsolescence andspoilage cost. However on other side stocking fewerinventories than actual demand isn’t again a good situation as business may run into risks of losing sales or valuedcustomers.Recently materials management also includes forecasting and capacity planning as one of the strategic areaswith certaincommonly known performance indicators to understand where we are and where we wan to go and till when?This paper is purely focused on secondary data collected from journals, articles, reference books, and research papers.Paper focus on three major parameters including risks in materials function, performance indicators used to measurematerials management and key strategies being used to mitigate risks or to sustain proper scientific planning.Moreover this paper also highlights on industry trends & some recently done research outcomes from similar area.

Amol Prasad Khedkar, Dr. ShyamkantShrigiriwar, “Risk Assessment metrics and mitigation strategies in materials management function with reference to manufacturing industry”, International Journal of Advance Engineering and Research Development (IJAERD), Vol. 3, Issue 9, pp. 89-101, September 2016.